We are following the age old traditional Q&A model to teach people. Search the below FAQ’s to solve your queries. Most of the links refer to third party websites. The page is continuously updated for adding new information. Read Disclosures for Terms & Conditions

Why should I invest?

Well, money has the power to generate more money. The more money you have it will create more money which will create further money and cycle goes on. Its called compounding.See this video to understand the benefits of investing

What is financial planning?

You may be wondering what it means by financial planning and why is it important.Here is a simple video which explains you

Differences between saving and investing

What we do with out money can be differentiated in three ways - Saving, Investing, Speculating. As we move from saving to speculating the risk we take is higher.

What is risk?

We read statements like stocks and mutual funds are risky. But do we understand what it means to be risky?

What is inflation and what relation it has with investment?

The principle reason why we are asked to invest in stocks and mutual funds is inflation. What is it and why is it so?

How to start investing with no cash?

The common answer we come up if someone asks us to invest is - " I don't have money to invest". So what do you do? You can create cash by following

  1. Save - Reduce your non essential expenses. Free up some cash
  2. Pay less tax - Most people pay unnecessary taxes, if you plan well, you will find there is so much money you can save tax
  3. Increase your income - Ask your boss to raise your salary or do a part time consulting or tutoring anything which doesn't need money and uses your skills
  4. Sell stuff - You may be owning some extra things which you don't need really or not using. May be your morning walker, old bike or car, unnecessary furniture
  5. Delay paying loans - Reduce your home loan/other EMI's going to the bank and asking them to increase the loan repayment term

Once you generate additional money, you can invest that money for your future

What is a mutual fund?

What is a stock?

What is a bond?

Why should we invest in Mutual funds?

How does a mutual fund work?

Mutual fund managers use different portfolio management techniques to reduce risk and make as much money as possible. You can check this video to understand how they do it

What is an SIP and its benefits?

SIP means investment planning. Put simply its like installment buying. You pay every-month some money to invest in savings deposits, mutual funds or gold coins etc. for more

What are the different type of mutual funds?

There are different types of funds classified based on

purchasing flexibility - Open or closed

Securities they invest - purely bonds or purely equity or a mix of both

Companies they invest - large, medium, small or a mix of all with different proportions

Investing styles - value, growth

Sector focused - focused on specific industry - banks, pharma, FMCG etc
See this video for a simpler explanation

Can I invest in mutual funds to save tax?

Yes. These type of funds are called ELSS funds. Investments under this are exempted from tax under Sec 80C.

Stock vs. Real Estate, which is better?

There is no single rule, it depends on your convenience, expertise and time you can find to research, find good investments and buying them. Each one has its own advantages and disadvantages. Find the one which suits you well.

I want to make money by trading. How should I start?

Don't trade. Its the easiest way to make money or rather save money. 90% of traders lose money. Still interested?

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